Question

Assess five roles of government in promoting the development of financial markets

Answer 1

Role of government in promoting the financial market in a country is as follows-

A.government will be helping in setting of fiscal policy which will be attracting a lot of investment into financial market

B. government will be setting the public disclosure rules which will be helpful in companies to disclose various informations to attract investors who want transparency

C. Formation of rules and regulations in order to attract foreign investments into the market

D. Providing support to the various sectors of the economy by bailing out packages at the time of the adverse economic scenario and being a capitalist government

E. Assisting the central bank in order to provide a better monetary policy which will be helpful to to manage the economy in a better way and providing stimulus in order to generate the demand and control the money flow into the economy.